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How to save more money by avoiding bank fees

14 June, 2014

All the banks around you are announcing a lot of offers and customer retention programs to keep you in their business. This shows how profitable the banks find your account. This is mainly due to the bank fees incurred by the customers, every year.

Most of the people with or without knowledge are spending a lot of money as bank fee. The Bank introduces fees for a lot of different reasons from maintenance to the transaction process. Though the fee looks small in the beginning, they add up to a big figure. Small or big, it is once again your money that you can save. Here are a few fees that can be avoided.

Maintenance fee

Most the banks have a minimum maintenance fee. The banks usually give easy tips to waive off these fees. You need to maintain a certain minimum balance to avoid these fees. Moreover, the type of account you hold also has a considerable effect on the maintenance fee. If you are not able to know why certain amount has been removed by the bank, you can contact them and get it refunded.

Fee for losing card

If you lose your credit or debit card, you would be affected by the person who stole it and also the bank. The bank would insert a charge for replacing the card. If you need your new card immediately, then the bank would charge you even more. You can waive off these charges for the first time.

Account closure

Premature closure of the account would put a charge on you. It is better to keep your account open till you need not pay the closure money. It is better to leave the minimum balance in it and then withdraw all the money.

OD fee

To avoid paying this fee, the account owner must monitor the balance and withdraw money accordingly.

Sometimes, it is better to opt for a bank with minimum foreign transaction charge, minimum balance and low card losing cost. This would help you save a lot in a big picture. Check your statement every month to know the amount of money you are paying the bank as fee. If the fee is very large and if there is nothing you could do to avoid it, then it is time to shift the bank.